Talks to Sell United Biscuits to Bright Food Falter

The Wall Street Journal reports that negotiations to sell United Biscuits to China's Bright Food Group are near collapse, referring to people familiar with the matter, dealing a blow to efforts by a pair of private-equity firms to unload the U.K. snacks maker, known for its Carr's crackers.

Blackstone Group and France's PAI Partners had entered into exclusive talks with Shanghai-based Bright Food for a deal could have been valued at more than £2 billion ($3.2 billion). The exclusivity period hasn't officially ended, but the talks are effectively dead, according to people familiar with the situation.

It isn't clear what exactly doomed the talks, but Bright has recently turned its attention to nutritional supplement retailer GNC Holdings Inc., which is for sale, according to people familiar with the matter, and that may have played a role.

It is also unclear what the private-equity firms will do next. One option would be to run a wider auction process, and another would be to put any plans to sell the business on ice for now.